January 30, 2024 — Danish company Ørsted has agreed to acquire utility company Eversource Energy’s 50% stake in a 924-megawatt offshore wind farm in New York, Sunrise Wind.
Eversource, based in Hartford and Boston, previously announced that it would divest its 50% ownership stake in three offshore wind projects in New York and Connecticut, including Sunrise Wind.
As a result, Eversource will take a 2023 fourth-quarter charge of up to $1.6 billion.
January 17, 2024 — Will 2024 prove as monumental a year for the offshore wind industry as last year? Reading the respective press releases and news stories brought to mind the opening line of Charles Dickens’ A Tale of Two Cities: “It was the best of times, it was the worst of times.” That describes the East Coast offshore wind industry today.
The best of times. Avangrid Inc., a member of the Iberdrola Group, and Copenhagen Infrastructure Partners CI II fund are jointly developing Vineyard Wind 1, an 806-megawatt project located 15 miles off the coast of Martha’s Vineyard. According to a Jan. 3 press release, the first turbine undergoing commissioning sent five megawatts of power to the New England grid at 11:52 PM the night before. Is it still sending power? Our inquiry to Avangrid has not been answered, but the press release talked about further testing being needed. Sounds like it isn’t sending power.
The press release claims this power is the first to come from a commercial-scale U.S. offshore wind project. However, Ørsted and partner Eversource claimed they sent the first power from their South Fork Wind farm off Long Island to the New York grid in early December. Funny, we haven’t heard anything more from them. But how could Avangrid have missed that announcement? Maybe there is a back story we don’t know yet.
December 8, 2023 — The U.S Federal Permitting Improvement Steering Council on Thursday approved the construction of a $1.5 billion offshore wind farm off the coast of Rhode Island.
The project, Revolution Wind, is run by Danish company Orsted and U.S.-based Eversource, and would bring a total of 704 megawatts (MW) clean energy to Connecticut and Rhode Island.
Another offshore project by the two wind energy developers, the South Fork wind farm off the coast of New York, delivered its first power to the state’s power grid on Wednesday.
December 7, 2023 — Despite some recent financial setbacks, U.S. offshore windpower has hit a milestone. An 800-foot tall turbine is now sending electricity onto the grid from a commercial-scale offshore wind farm on pace to be the country’s first.
The moment is years in the making and at the same time a modest advance in what experts say needs to be a major buildout of this type of clean electricity to address climate change.
Danish wind energy developer Ørsted and the utility Eversource announced Wednesday the first electricity from what will be a 12-turbine wind farm called South Fork Wind 35 miles (56 kilometers) east of Montauk Point, New York. It will be New York’s first offshore wind farm.
November 7, 2023 — After dropping its flagship U.S. project Ocean Wind, Ørsted is seeking to pull back $300 million in obligations to New Jersey.
Once its board of directors had decided to kill the 1,100-megawatt plan on Oct. 31, the next day Ørsted notified the state Board of Public Utilities that it wants to get back a $100 million guarantee that it would complete the project. The company is also pulling back on $200 million it had planned to invest with steel fabricator EEW for its monopile foundation manufacturing plan in Paulsboro, N.J.
Ørsted and state officials signed off on those promises just weeks before the surprise announcement that Ocean Wind 1 and 2 would not be built – a move that Ørsted CEO Mads Nipper said would address more than 70 percent of the company’s recent $2.3 billion writedown of its assets in the beleaguered U.S. offshore wind market.
November 7, 2023 — Offshore wind power company Orsted is trying to get out of a $300 million guarantee it agreed to pay New Jersey in the event it failed to build its first wind farm off the state’s coast.
Last Tuesday, the Danish firm scrapped its Ocean Wind I and II projects in southern New Jersey, saying the projects were no longer financially feasible. The company cited supply chain issues, inflation and a failure to gain enough government tax credits.
The next day, Orsted wrote to the New Jersey Board of Public Utilities, saying it was withdrawing from an agreement it signed with the state under which it would forfeit the money if it did not build Ocean Wind I.
November 6, 2023 — Offshore wind developer Ørsted said it is pulling out of its Ocean Wind 1 and Ocean Wind 2 projects off the coast of the U.S. state of New Jersey.
Ørsted Group Executive Vice President and CEO Americas David Hardy cited escalated financial difficulties and supply chain issues for the move, after the Danish company’s board of directors announced the decision at the start of an earnings call.
November 2, 2023 — Plans to build two wind farms off the coast of New Jersey were scrapped, the company behind them said on Wednesday, a blow to the state’s efforts to cut greenhouse gas emissions and the latest shakeout in the U.S. wind industry.
The move, which will force Orsted, a Danish company, to write off as much as $5.6 billion, will crimp the Biden administration’s plans to make the wind industry a critical component of plans to reduce greenhouse gas emissions. High inflation and soaring interest rates are making planned projects that looked like winners several years ago no longer profitable.
“The world has in many ways, from a macroeconomic and industry point of view, turned upside down,” Mads Nipper, Orsted’s chief executive, said on a call with reporters on Wednesday.
The two projects, known as Ocean Wind 1 and 2, were destined to provide green energy to New Jersey. They were strongly backed by the state’s governor, Phil Murphy, a Democrat with national ambitions who stresses his environmental credentials but who has lately drawn scorn for falling short in combating climate change. On Wednesday he suggested that Orsted was a dishonest broker and insisted that the “future of offshore wind” along the state’s 130-mile coastline remained strong.
Mr. Nipper said Orsted thought that losses on the New Jersey projects would rise over time, so “the only sensible thing is to draw a line in the sand.”
Overall, the Biden administration wants to install 30 gigawatts of wind power in the United States by 2030, and officials in New Jersey had been aiming to produce 11 gigawatts by 2040.
October 2, 2023 — Danish global offshore wind developer Orsted’s abrupt announcement this week that it is abandoning both of its massive projects planned off the New Jersey coast is a stinging blow to Gov. Phil Murphy’s ambitious goal of addressing climate change that threatens the state’s coast.
The company’s announcement Tuesday night was akin to abruptly snatching away key pieces of the state’s renewable energy puzzle. As of Wednesday, it was unclear how leaders would fill that void.
However, one key piece does remain in place: Atlantic Shores, the largest single wind farm yet approved by the New Jersey Board of Public Utilities (BPU).
Orsted in its earnings statement cited economic headwinds as the reason.
“Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments,” said David Hardy, group executive vice president and CEO Americas at Orsted. “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2.”
Hardy said the company was disappointed and thanked Murphy and other state leaders who tried to kick-start the industry in the state, hoping to make it a hub for offshore wind in the Northeast.
Murphy, however, was having none of it. His administration took significant political heat in backing recent legislation allowing Orsted to take federal renewable energy credits that initially state law allowed to go only to ratepayers.
“Today’s decision by Orsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence,” the governor said in a statement. “As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project.”
Murphy said his administration is looking “to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations.”
State officials who backed offshore wind are “upset, frustrated, and disappointed,” said a senior administration official, who called Orsted’s decision a “setback” in the state’s aggressive goal of obtaining 100% clean energy by 2035. The official said the administration is proceeding with offshore wind because “it’s too important to our economic future. It’s too important for our environmental and energy needs.”
It could take time for the state to find, and approve, a new developer to replace the 2.2 gigawatts of energy that would have been generated by Orsted’s Ocean Wind 1 and 2 projects — enough to have powered about 1 million homes.
November 2, 2023 — New Jersey’s leaders are blasting a decision by a Danish energy company to back away from two major offshore wind projects off the state’s coastline.
In a statement issued Tuesday, Ørsted announced that it is scrapping two large offshore wind power projects off the coast of New Jersey, delivering a major blow to the state’s clean energy plans and Gov. Phil Murphy’s push to put the coastal state at the forefront of the nation’s nascent offshore wind industry.
Murphy ripped the company’s decision to walk away from the projects, calling it “outrageous” and saying it “calls into question the company’s credibility and competence.”
“As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project,” he said.
Murphy said a provision of the company’s development agreement requires it to pay New Jersey $300 million to support the offshore wind sector if the projects don’t proceed.
“I have directed my administration to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations,” he said.